Capitalism vs Socialism - 1746 Words

Outline: Essay question: What is the best policy for any country: capitalism or socialism? Introduction: Thesis statement: It is much better to live in the country where the gap between poor and rich people is sharply noticeable, than to know that a person will never differ from the mass of people or feel a real freedom in his/her own country. Body: A. Capitalistic policy gives an equal opportunity to everyone to become a wealthy person. * Person can have his own business and develop it in the future. * The nation becomes rich B. Market economy is the base of capitalism. * Foreign investments * Business cycle. C. Advantages of capitalist mode showed by Adam Smith. D. Socialism lost its popularity in†¦show more content†¦Thus, entrepreneur satisfies the demand and makes profits. Of course, there is nothing eternal and everything will lose its importance, but the mechanism of capitalism is great. (The history of capitalism: from feudalism to Wall Atreet, Beattie, 2011). To justify capitalism, such a great person as Adam Smith represented five main advantages of capitalism: 1. With little interference by the government, problems like corruption, lack of incentives and poor information do not arise. We end up with these problems only when governments attempt to control the economy. This is one of the main benefits of capitalism. 2. Cost effective allocation of resources being the ‘invisible hand of the market’, capitalism ensures that resources are distributed according to consumer choice. No firm is rewarded for producing goods that people don’t desire. 3. Successful Production. One of the advantages of capitalism is that as firms have incentives to be efficient in production, in a market system, cutting costs, improving competitiveness and productivity are their top priority. They will go out of business if their efficiency and productivity fails. 4. Dynamic Efficiency. Firms in a capitalist system need to respond to the flux in consumer preferences and respond according to the new consumer trends. This improves and maintains their efficiency over time. 5.Show MoreRelatedCapitalism Vs. Socialism And Socialism868 Words   |  4 PagesCapitalism vs Socialism Capitalism and socialism have been two school of thoughts in economics that have opposing factors, and there have been a lot of criticisms and comparison on which economy is better in terms of economic equality, and the role that the government plays in the society. In most situations, a society with a better economic opportunities and choices, with more technological advancement and private owned businesses would be a better option to a society that is collectively ownedRead MoreSocialism : Socialism Vs. Capitalism1156 Words   |  5 PagesEric Butterbaugh Mrs. Penwell English Composition November 8, 2015 Socialism V. 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